Oklahoma § 36-2012 - Exhaustion of rights under other policies, governmental

§ 36-2012. Exhaustion of rights under other policies, governmental

program or associations.

A. 1. Any person having a claim against an insurer shall be

required to first exhaust all coverage provided by another policy if

it arises from the same facts, injury or loss that gave rise to the

covered claim against the Oklahoma Property and Casualty Insurance

Guaranty Association. The requirement to exhaust all coverage shall

apply without regard to whether the other insurance policy is a

policy written by a member insurer. However, no person shall be

required to exhaust any right under the policy of an insolvent

insurer or any right under a life insurance policy.

2. Any amount payable on a covered claim under the Oklahoma

Property and Casualty Insurance Guaranty Association Act shall be

reduced by the full applicable limits stated in the insurance policy

or by the amount of the recovery under the insurance policy as

provided herein. The Association shall receive a full credit for

the stated limits, unless the claimant demonstrates that the

claimant used reasonable efforts to exhaust all coverage and limits

applicable under the other insurance policy. If the claimant

demonstrates that the claimant used reasonable efforts to exhaust

all coverage and limits applicable under the insurance policy, or if

there are no applicable stated limits under the policy, the

Association shall receive a full credit for the total recovery.

B. Any person having a claim which may be recovered under more

than one insurance guaranty association or its equivalent in another

state shall seek recovery first from the association of the place of

residence of the insured. If it is a first party claim for damage

to property with a permanent location, the person shall seek

recovery first from the association of the state where the property

is located, and if it is a workers' compensation claim, the person

shall seek recovery first from the association of the residence of

the claimant. Any recovery under this act shall be reduced by the

amount of recovery from any other insurance guaranty association or

its equivalent.

Added by Laws 1980, c. 362, § 12, emerg. eff. June 27, 1980.

Amended by Laws 1986, c. 251, § 34, eff. Nov. 1, 1986; Laws 2010, c.

159, § 10, eff. Nov. 1, 2010.